To the extent that you receive these benefits, you should invest the funds in a separate account in trust for your children. Investment income on these funds will not be attributed to you. The Child Tax Benefit is based on family income. Consequently, higher income families do not qualify for the benefit. The Universal Child Care Benefit is available to all parents for children under the age of six and is paid in instalments of $100 per month per child.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of Oct 19, 2012.